Correlation Between OceanaGold and Cache Exploration
Can any of the company-specific risk be diversified away by investing in both OceanaGold and Cache Exploration at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining OceanaGold and Cache Exploration into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between OceanaGold and Cache Exploration, you can compare the effects of market volatilities on OceanaGold and Cache Exploration and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in OceanaGold with a short position of Cache Exploration. Check out your portfolio center. Please also check ongoing floating volatility patterns of OceanaGold and Cache Exploration.
Diversification Opportunities for OceanaGold and Cache Exploration
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between OceanaGold and Cache is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding OceanaGold and Cache Exploration in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cache Exploration and OceanaGold is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on OceanaGold are associated (or correlated) with Cache Exploration. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cache Exploration has no effect on the direction of OceanaGold i.e., OceanaGold and Cache Exploration go up and down completely randomly.
Pair Corralation between OceanaGold and Cache Exploration
If you would invest 279.00 in OceanaGold on September 5, 2024 and sell it today you would earn a total of 38.00 from holding OceanaGold or generate 13.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
OceanaGold vs. Cache Exploration
Performance |
| Timeline |
| OceanaGold |
| Cache Exploration |
OceanaGold and Cache Exploration Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OceanaGold and Cache Exploration
The main advantage of trading using opposite OceanaGold and Cache Exploration positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OceanaGold position performs unexpectedly, Cache Exploration can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Cache Exploration will offset losses from the drop in Cache Exploration's long position.| OceanaGold vs. Cache Exploration | OceanaGold vs. Evolution Mining | OceanaGold vs. Northern Star Resources | OceanaGold vs. Wesdome Gold Mines |
| Cache Exploration vs. Harmony Gold Mining | Cache Exploration vs. SPACE | Cache Exploration vs. T Rowe Price | Cache Exploration vs. Ampleforth |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Stocks Directory module to find actively traded stocks across global markets.
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